Natural Gas Prices Could Drop By Up To 50% With New Regulatory Reform Resumed By Paulo Guedes

Written by Paulo Nogueira

Published on 24/03/2019 at 20:48

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Brazil’s President Jair Bolsonaro Government Will Resume the Regulatory Reform Process That Was Interrupted This Year, and Gas Prices Could Drop by Up to 50%, Says Minister

The Brazilian government intends to relaunch a regulatory reform for the country’s natural gas sector before the end of the second quarter of the year. The natural gas sector in Brazil Is Viewed as Underdeveloped and Over-Regulated, and the reforms are considered vital for the country to explore its commercial resources’ full potential. Operators complain that the abundant natural gas associated with offshore pre-salt fields can sometimes act as an impediment to field development in the absence of well-regulated reforms.

The previous government under President Michel Temer held extensive consultations before the regulatory reform program called “Gas for Growth,” but the political agenda was shaken by domestic political issues, including corruption allegations against Temer that date back to before he took office.

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Why Is Brazil’s Natural Gas So Expensive?

Marcelo Gauto, Specialist in Oil, Gas, and Energy, states that the basic reasons are: 35% of the gas is imported and our gas production is predominantly offshore, with high logistics costs. In 2018, distributors purchased gas from Petrobras at prices ranging between US$ 6.0 and US$ 8.0 per MMbtu FOB and resold it between US$ 10.7 and US$ 19.0 per MMbtu to the end consumer. The break of Petrobras’ monopoly on gas infrastructure, which many experts point to as a solution to lower prices, is just the tip of the iceberg.

Natural Gas Prices Could Drop By Up To 50% With New Regulatory Reform Resumed By Paulo Guedes

Brazil’s President Jair Bolsonaro Government Will Resume the Regulatory Reform Process That Was Interrupted This Year, and Gas Prices Could Drop by Up to 50%, Says Minister

Why Is Brazil’s Natural Gas So Expensive?

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

At the bottom of the South Pole ice, the IceCube observatory drilled more than a kilometer and a half of ice to hunt ghost particles and test whether gravity obeys the rules of quantum physics.

Samara left the city, built a small power plant on her property, and now lives surrounded by waterfalls, her own energy, sustainable recycling, and preserved nature in the Serra da Mantiqueira.

While Saudi Arabia and Qatar are already closing a 300-kilometer-per-hour bullet train to connect the capitals in two years, Brazil is still at the stage of auctioning the first freight railway that should actually come to fruition.

Turkey hit a target using a real warhead and confirmed that its SOM-J cruise missile is ready, another step for the country to become a power that manufactures and exports its own military technology.

Natural Gas Prices Could Drop By Up To 50% With New Regulatory Reform Resumed By Paulo Guedes

Brazil’s President Jair Bolsonaro Government Will Resume the Regulatory Reform Process That Was Interrupted This Year, and Gas Prices Could Drop by Up to 50%, Says Minister

Why Is Brazil’s Natural Gas So Expensive?

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

Water hyacinth that blocks boats, oxygen, and channels gains a new function as a lightweight construction panel, creating a sustainable alternative, reducing waste, and offering efficient thermal insulation.

More than 230 Brazilian companies move production to Paraguay, pay a tax rate close to 12%, compared to about 80% in Brazil, and use Mercosur to sell back to the domestic market without import tax.

Dredged material from navigation channels restores life to Poplar Island, reconstructs 1,715 acres of land, expands open water zones, and creates a refuge for hundreds of migratory and local bird species.

About 500 kilos of green stones with juvenile algae are spread in the ocean to regenerate underwater forests, reduce costs, and accelerate the restoration of marine habitats.

At the bottom of the South Pole ice, the IceCube observatory drilled more than a kilometer and a half of ice to hunt ghost particles and test whether gravity obeys the rules of quantum physics.

Samara left the city, built a small power plant on her property, and now lives surrounded by waterfalls, her own energy, sustainable recycling, and preserved nature in the Serra da Mantiqueira.

While Saudi Arabia and Qatar are already closing a 300-kilometer-per-hour bullet train to connect the capitals in two years, Brazil is still at the stage of auctioning the first freight railway that should actually come to fruition.

Turkey hit a target using a real warhead and confirmed that its SOM-J cruise missile is ready, another step for the country to become a power that manufactures and exports its own military technology.